kokonaistuotannossa

Kokonaistuotannossa, often translated as "total production" or "gross output" in English, refers to the total value of goods and services produced by an economy over a specific period, typically a year. It encompasses all intermediate goods and services that are used up in the production process. This is in contrast to Gross Domestic Product (GDP), which measures the value added at each stage of production and avoids double-counting intermediate goods.

Understanding total production is important for economic analysis as it provides a comprehensive view of the scale of economic activity. However, it is not as commonly used as GDP for measuring economic welfare or growth because the value of intermediate goods is included. For example, if a bakery produces bread, the total production would include the value of the flour, yeast, and electricity used to make the bread, as well as the final price of the bread itself. GDP, on the other hand, would only measure the value added by the bakery in transforming these inputs into bread.

In national accounting, total production is sometimes calculated as the sum of sales and changes in inventories. While a useful metric for understanding the entire flow of goods and services, economists generally prefer GDP for its ability to measure net economic output and avoid the complexities of accounting for the vast quantities of intermediate goods that are traded and consumed within the production process.